SanDisk 2009 Annual Report Download - page 142

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Notes To Consolidated Financial Statements
Stock Options and SARs. A summary of stock options and stock appreciation rights (“SARs”) activity
under all of the Company’s share-based compensation plans as of January 3, 2010 and changes during the fiscal
year ended January 3, 2010 is presented below:
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
(In thousands, except exercise price and contractual term)
Options and SARs outstanding at January 1, 2007........ 26,392 $ 31.97 6.7 $ 392,469
Granted ..................................... 5,848 43.65
Exercised .................................... (4,678) 20.24 124,816
Forfeited .................................... (1,728) 45.99
Expired ..................................... (277) 56.03
Options and SARs outstanding at December 30, 2007..... 25,557 35.59 5.8 165,185
Granted ..................................... 3,616 21.29
Exercised .................................... (895) 7.77 11,751
Forfeited .................................... (1,927) 42.47
Expired ..................................... (1,294) 43.35
Options and SARs outstanding at December 28, 2008..... 25,057 33.59 4.9 5,284
Granted ..................................... 4,242 9.41
Exercised .................................... (964) 12.60 5,807
Forfeited .................................... (1,376) 32.94
Expired ..................................... (2,063) 38.97
Options and SARs outstanding at January 3, 2010.... 24,896 29.87 4.4 180,834
Options and SARs vested and expected to vest after
January 3, 2010, net of forfeitures .............. 23,212 30.31 4.3 162,902
Options and SARs exercisable at January 3, 2010 ........ 17,290 33.74 3.9 88,180
At January 3, 2010, the total compensation cost related to options and SARs granted to employees under the
Company’s share-based compensation plans but not yet recognized was approximately $62.4 million, net of
estimated forfeitures. This cost will be amortized on a straight-line basis over a weighted average period of
approximately 2.5 years.
Restricted Stock Units. Restricted stock units (“RSUs”) are converted into shares of the Company’s
common stock upon vesting on a one-for-one basis. Typically, vesting of RSUs is subject to the employee’s
continuing service to the Company. The cost of these awards is determined using the fair value of the Company’s
common stock on the date of the grant, and compensation is recognized on a straight-line basis over the requisite
vesting period.
F-30